The Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 is aimed at helping eligible urban families construct or purchase a permanent house. The new phase was launched in September 2024 and is being implemented for five years, with a target of supporting 1 crore additional urban families.
Under PMAY-U 2.0, eligible beneficiaries can receive Central assistance of up to ₹2.50 lakh per housing unit, depending on the applicable component and conditions of the scheme.
Meanwhile, the original PMAY-U mission, which was initially scheduled to end earlier, has been extended until September 30, 2026. The extension is intended to allow completion of already sanctioned houses and facilitate the release of pending funds.
Who Is Eligible for PMAY-U 2.0?
PMAY-U 2.0 covers eligible families from the Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG).
The annual household income limits are up to ₹3 lakh for EWS, ₹3 lakh to ₹6 lakh for LIG and ₹6 lakh to ₹9 lakh for MIG. A key condition is that the beneficiary family must not own a pucca house anywhere in the country in the name of any family member.
The scheme is intended for urban families seeking assistance to construct or purchase a pucca house through the applicable PMAY-U 2.0 component.
What Interest Subsidy Is Available?
Under the Interest Subsidy Scheme of PMAY-U 2.0, eligible households with annual income of up to ₹9 lakh can receive an interest subsidy of 4% on the first ₹8 lakh of a housing loan.
The maximum loan considered under this component is ₹25 lakh, while the property value can be up to ₹35 lakh. The maximum actual subsidy is ₹1.80 lakh and is released in five equal annual instalments, subject to the conditions specified in the scheme guidelines.
The loan tenure for the subsidy component can be up to 12 years, subject to the scheme’s prescribed conditions.
Documents and Application Process
Applicants need to complete Aadhaar-based authentication and provide the information required under the relevant PMAY-U 2.0 component. The application process includes details relating to the applicant, family, income, address and housing requirements.
For applications under the Interest Subsidy Scheme, applicants can proceed through the PMAY-U 2.0 online system. After completing the eligibility check and Aadhaar authentication, the required application details need to be entered and submitted.
The application process generates an application or registration reference, which can be retained for future tracking and records. Applicants should ensure that the information submitted matches their supporting documents.
The official PMAY-U website provides access to the PMAY-U 2.0 guidelines, application system and related information.
More Than 1 Crore PMAY-U Houses Completed
The original PMAY-U has crossed a major implementation milestone. According to information reported from the Ministry of Housing and Urban Affairs, more than 1.25 crore houses had been sanctioned under PMAY-U as of August 9, 2026, with more than 1 crore houses completed.
The original mission has been extended up to September 30, 2026 so that sanctioned projects can be completed. PMAY-U 2.0 is being implemented separately for the next phase, with a target of providing housing assistance to 1 crore additional urban families.